1. What You Need to Know about Financial Aid

2. Topics We Will Discuss Tonight
Cost of attendance (COA)
Expected Family Contribution (EFC)
Free Application for Federal Student Aid (FAFSA)
Categories, types, and sources of financial aid
MD Higher Education Commission Programs

3. What is Cost of Attendance (COA)
Direct costs: Tuition, fees, room and board
Indirect costs: Books, transportation, miscellaneous expenses
Varies widely from college to college: According to the College Board's Trends in College Pricing, the average cost of attendance is $24,061 for in state students and $38,544 for out of state students attending four-year public colleges and universities. Students attending private colleges can expect an average cost of attendance of $47,831.

4. What is the Expected Family Contribution (EFC)
Amount family can reasonably be expected to contribute
Stays the same regardless of college
Two components
Parent contribution
Student contribution
Calculated using data submitted on the Free Application for Federal Student Aid (FAFSA)

5. How is the EFC Calculated?
The EFC calculation is complex and takes into consideration many factors including: parent and student income, income tax liability, exemptions claimed, net asset value, household size, number in college, age of parents, etc.
The EFC Formula Guide can be found at the following website:

6. What is Financial Need? Cost of Attendance (COA)
– Expected Family Contribution (EFC)
= Financial Need
Ex: COA = $25,000
EFC = $10,000
Financial Need = $15,000

7. FAFSA on the Web
NEW

8. FAFSA on the Web

9. FSA ID Sign FAFSA electronically Not required, but speeds processing
Sign FAFSA electronically
Not required, but speeds processing
May be used by students and parents throughout aid process, including subsequent school year
Only the owner should create a FSA ID

10. FAFSA Filing
File as early as possible after October 1st for the upcoming academic year
If eligible, you should utilize the IRS Data Retrieval Tool to populate the financial section for both parent and student when completing the FAFSA
The IRS DRT pulls your 2015 income and tax information into the FAFSA directly from the IRS

11. IRS Data Retrieval Tool
While completing FOTW, applicant may submit real-time request to IRS for tax data
IRS will authenticate taxpayer’s identity
If match found, IRS sends real-time results to applicant in new browser window
Applicant chooses whether or not to transfer data to FOTW

12. Verification
Many students are selected for a process called verification
Verification requires the institution to validate the information reported on the FAFSA
You will be asked to provide IRS-confirmed tax information as well as W-2’s, and verification of household size

13. Frequent FAFSA Errors Social Security Numbers
Divorced/remarried parental information
Income earned by parents/stepparents
Untaxed income
U.S. income taxes paid
Household size
Number of household members in college
Real estate and investment net worth

14. Financial Aid Flow Chart
Student & Parents
Complete FAFSA
(Free Application for
Federal Student Aid)
Send FAFSA to Federal Processor
Federal Processor
Calculates EFC
(Expected Family
Contribution)
FAO
(Financial Aid Office)
Determines aid based on EFC
Processed FAFSA results are sent to the Financial Aid Office and to the student.

15. Types of Financial Aid
Scholarships: money awarded on the basis of merit, skill or unique characteristic
Grants: money awarded on the basis of financial need (usually)
Loans: money borrowed by parents and students to help offset educational expenses
Employment: provides a paycheck or non-monetary compensation such as room or board

16. Sources of Financial Aid
Federal government
States
College/University
Private sources
Employers

17. Federal Government Largest source of financial aid
FY2016 budget request for $148 billion to provide assistance to nearly 13.2 million students and families
Aid awarded primarily on the basis of financial need
Must apply every year using the Free Application for Federal Student Aid (FAFSA)

18. Federal Aid Programs: Grants
Federal Pell Grant: Award amount ranges from $598- $5,815 depending on EFC. Awards are phased out if EFC is greater than $5,234 (phase out EFC is lower for part- time attendance).
Teacher Education Assistance for College and Higher Education Grant (TEACH Grant): Award amount ranges from $1,000-$4,000 per year. Award is specific to students majoring in high demand education specialties including math, science and foreign language. Requires a commitment to teach in a Title 1 school.

19. Federal Aid Programs: Campus-Based
Federal Supplemental Educational Opportunity Grant (SEOG) : Award amounts range from $100 -$4,000. First priority given to Federal Pell Grant recipients with exceptional financial need
Federal Perkins Loan: Award amounts determined by the institution, maximum award is $5,500/year. Interest is fixed at 5%, 9 month deferment before payments are required.
Federal Work-Study: Award amount determined by institution. Based on financial need.

20. Federal Aid Programs: Loans
Stafford Loans: Fixed interest rate for is 3.76%
Subsidized (no interest while in school)
Unsubsidized (accrues interest while in school)
Freshman: $3,500
Sophomore: $4,500
Junior/Senior: $5,500
Additional Unsubsidized Loan (3.76%)
All classifications: $2,000
PLUS Loans (up to COA) (6.31%)
Parent PLUS Loans are subject to a credit approval process and can be deferred while the student is enrolled.

21. MD Higher Education Commission: $112
MD Higher Education Commission: $112.8 Million for State Financial Aid/Grants for FY16

22. MD State Financial Assistance
Need Based Grants
Guaranteed Access Grant
Educational Assistance Grant
Legislative Scholarships
Delegate & Senatorial
Career/Occupational- Based Grants & Scholarships
Workforce Shortage Grants
Unique Populations

23. MD CAPS: https://mdcaps.mhec.state.md.us/MDCAPS/login.aspx

24. Questions & Answers Barri Zimmerman, Director of Financial Aid
Salisbury University Financial Aid Office
1101 Camden Ave., Salisbury, MD 21801
Phone:
Website: